The global economic impact of the COVID-19 pandemic is very broad and deep, affecting various aspects of people’s lives throughout the world. Regional closures and social restrictions imposed as mitigation measures resulted in a recession in many countries. Most economic sectors, including travel, tourism and services, experienced sharp declines. The international travel sector, one of the main drivers of the global economy, recorded a significant decline. According to a report from the International Air Transport Association (IATA), passenger numbers fell by more than 90% during the peak of the pandemic, causing billions of dollars in losses for airlines. Tourism-dependent countries, such as Thailand and Spain, are facing a more severe impact, with unemployment soaring and foreign exchange earnings plummeting. The global economy is also seeing disruptions to supply chains. Uncertainty and travel restrictions cause delays in the delivery of goods. For example, the automotive industry in Europe and North America was forced to stop production due to a lack of important components from Asia. This causes a spike in the price of goods and disrupts ongoing development projects. The retail sector is experiencing dramatic changes with many physical stores closed or operating at limited capacity. E-commerce is becoming a major channel, with companies like Amazon recording incredible sales spikes. However, not all businesses were able to adapt, and many small and medium enterprises (SMEs) were forced to close. Inflation has also increased in many countries as a result of loose monetary policy and fiscal stimulus issued by the government to support the economy. Rising raw material and logistics costs push prices of consumer goods up. On the other hand, a sharp spike in unemployment due to layoffs (PHK) added pressure to people’s purchasing power. Amid this crisis, there is an emphasis on technological innovation and digitalization. Many companies are investing in digital transformation to survive, creating new opportunities in the world of work. Technology industries such as software and cloud services are seeing significant growth, showing how rapid adaptation to new conditions can create value. Apart from that, social and economic disparities are also widening. Vulnerable groups, including informal workers and minority communities, are often the most affected. They face difficulties in accessing health services and financial support, adding to the challenges of inclusive economic recovery. Governments in various countries are implementing various policies to support economic recovery. The application of subsidies, tax incentives, and job training programs are designed to restore jobs and support SMEs. However, the success of this policy is highly dependent on the effectiveness of implementation and global macroeconomic conditions. In the context of the global economy, international collaboration is important to mitigate risks and ensure sustainable growth. Countries need cooperation on vaccine distribution, information exchange and trade policies to reduce the long-term impact of the pandemic. With the various challenges faced, it is hoped that the global economy can emerge stronger by paying attention to equality and sustainability. However, prospects for a sustainable recovery depend on a collective response to the impact of the pandemic across sectors and countries.
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